Slide 1: 3Q 14 Financial Results Conference Call
3Q 14 Financial Results Conference Call
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains express or implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. Federal securities laws. These forward-looking statements include, but are not limited to, those statements regarding our cont
Slide 3: Presenters
Presenters Tali Dinar - Chief Financial Officer David Lucatz - Chairman of the Board and CEO Shai Lustgarten - CEO of Micronet Ltd.
Slide 4: Quarter Overview
Quarter Overview ■ Strong revenue growth for quarter ■ 43% increase over previous year ■ 73% sequential growth ■ Local fleet vertical becoming larger portion of sales ■ Significantly diversifying our customer base ■ EBITDA positive with clear path to enhanced profitability
Slide 5: Recent Transformative Acquisition Progressing Well
Recent Transformative Acquisition Progressing Well ■ In June, we consummated our acquisition of the U.S. Vehicle operation ■ Complementary product line with strong presence in local fleet vertical ■ U.S.-based MRM Division of Micronet Inc. ■ Enables MICT to establish strong U.S. sales and operationa
Slide 6: 3Q vs 3Q Revenues
3Q 13 vs 3Q 14 Revenues Driven by high growth in both divisions Consolidated revenue grew 43.5% for the quarter MRM
Slide 7: 2Q vs 3Q Revenues
2Q 14 vs 3Q 14 Revenues Also driven by high growth in both divisions Consolidated revenue grew 73% from 2Q 14 to 3Q 14 MRM
Slide 8: MRM Sales Mix by Vertical
MRM Sales Mix by Vertical 8 Long Haul 77% Construction & Heavy Equipment 32% Local Fleet 50% Long Haul 18% Growing Local Fleet Revenues FY 2013 Construction & Heavy Equipment 5%
Slide 9: Broadening Customer Diversity
Broadening Customer Diversity Customer A 83 % 3Q 2014 FY 2013 One Customer Accounted for 83% of Sales Ten Customers Account for 83% of Sales % of MRM Division Customer C 2 % Customer B 3 % Others 12%
Slide 10: Income Statement
Income Statement Quarter Ended September 30 , 2014 2013 Revenues $ 11,415 $ 7,956 Cost of revenues 8,546 4,366 Gross profit 2,869 3,590 Gross profit margin 25% 45% Operating expenses: Research and development 546 755 % of sales 4.7% 9.5% Selling and marketing 449 276 % of sales 3.9% 3.5% General and
Slide 11: Non-GAAP
Non-GAAP 11 Three Months Ended September 30, 2014 2013 Net income (506) 78 Amortization related to U.S. acquisition 213 - Amortization related to Micronet acquisition 93 93 Total amortization of acquired intangible assets 306 93 Change in fair value of warrants - 55 Amortization of UTA's note discou
Slide 12: Balance sheet summary
MICRONET ie September 30, December 31, 2014 2013 Cash, cash equivalents and $13.5M $19.8M marketable securities Long Term Debt (Bank & Others) $14.2M $9.1M Net Working Capital $17.3M $26.4M Stockholders’ Equity $14.6M $17.9M
Slide 13: MRM New Partnerships
MRM New Partnerships Recent Contracts XRS Corporation has certified Micronet Enertec’s M-307 rugged computer tablet to run the XRS solution. Partnership will enable Micronet to leverage Verizon’s extensive ecosystem of MRM partners, VARS, and systems integrators, providing them with ready access to
Slide 14: ELD Mandate Opportunity
ELD Mandate Opportunity Background Timeline Market Opportunity § Drivers are required to keep records of hours of service (HOS) § Cannot drive over 11 hours per day § Required rest periods § Electronic Logging Devices (ELDs) connect to engine and replace paper logbooks § Law being put in place requi
Slide 15: Looking Forward: Macro Trends Near to Medium Term
Looking Forward Macro Trends Near to Medium Term MRM § Local fleet market expected to grow 37% between 2014 and 2016 1 Aerospace/Defense § Increased missile strike threat support interest for our missile systems § Strong performance continuing - 4Q expected to be of similar magnitude as 3Q § Profita
Slide 16: Thank You
Thank You Q & A
Slide 17: Micronet Enertec Technologies, Inc
MICRONET ENERTEC TECHNOLOGIES, INC